Gold holds near 12-week high as dollar pressured ahead of Fed outcome
Gold stayed near a 12-week peak early on Wednesday, supported by a softer dollar as investors awaited the outcome of the Federal Reserve's first policy meeting of the year. The US central bank is widely expected to keep key rates unchanged at the conclusion later in the day of its two-day gathering, mindful of global economic headwinds from China to Europe.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,120.58 an ounce by 0054 GMT. It touched $1,122.90 on Tuesday, its strongest since Nov. 3.
* US gold for February delivery GCcv1 was little changed at $1,121 per ounce.
* Expectations for a rate increase at the Fed's next meeting in March are also receding, which should boost the price of non-interest bearing gold.
* Gold has gained nearly 6 percent so far this month, after ending 2015 with a loss of more than 10 percent.
* China's net gold imports for December via main conduit Hong Kong surged to the highest in more than two years, data showed, as investors lost faith in collapsing stock markets and a weakening currency and snapped up bullion.
* Kazakhstan bolstered its gold reserves in December, International Monetary Fund data showed on Tuesday, adding to its years-long buying spree when spot prices nudged down to the lowest level in nearly six years.
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MARKET NEWS
* Asian stocks were subdued as a wait-and-see mood prevailed ahead of the Fed's policy statement, and with sentiment fragile after a rout in Chinese shares the previous day.
